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- Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $0.36. If the krona appreciated 11% tomorrow against the dollar, how many kronas would a dollar buy tomorrow? LIf the Indian government unexpectedly announces thatit will be imposing higher tariffs on foreign goods oneyear from now, what will happen to the value of theIndian rupee today?You are going to Japan on an exchange trip in a few months and need to turn your dollars into the Japanese currency, the yen. Right now the exchange rate is $1 = 105 yen, but you expect the dollar to appreciate next month and it should be valued at $1= 107 yen. If you exchange $200 for yen today, how many yen will you receive? Explain. If you decide to wait and exchange your dollars when they are worth $1= 107 yen, how many yen will you receive? Explain. Based on this information, should you exchange your money now or wait a few months? Explain.
- How is the performance of Philippine economy in the year 2019 in terms of peso currency exchange rate to US dollars?Assume that the total value of investment transactions between the United States and Mexico is minimal. Also, assume that the total dollar value of trade transactions between these two countries is very large. Now assume that Mexico's inflation has suddenly increased, and Mexican interest rates have suddenly increased. a) Please draw a graph to show how the equilibrium value of Mexican Pesos will change. b) What's more important for Mexican Pesos given the circumstances, change in interest rates, or change in inflation in Mexico?How much of their local currency would someone from UK (local currency is Pound) need to buy an iPad that is being sold for #=$500 in the US?
- If a dollar can buy 98 Japanese yen and a British pound costs $1.50, how many yen would it take to buy £1? If a pound of copper costs £1 in Britain, ¥1,600 per pound in Tokyo, and $1.45 per pound in the United States, where is a pound of copper most expensive and where is it least expensive?Let $1 = .78 € and $1 = 6.3 CNY (Chinese Yuan Renminbi) How many CNY will be purchased for 1 €The Central American country of Belize is one of approximately 14 Caribbean community countries that pegs its currency to the U.S. dollar. The pegged rate is 2 Belize dollars equal 1 U.S. dollar (2 BZD = 1 USD or 1 BZD = 0.50 USD). This is illustrated in the figure below. Exchange Rate (USD BZD) 2.00 1.00 0.50 D Quantity of Belize dollars traded per day How will the actions of speculators affect this market? O The Belize dollar supply curve will shift to the right and the Belize dollar demand curve will shift to the left. O The Belize dollar supply curve and the Belize dollar demand curve will shift to the right. O The Belize dollar supply curve will shift to the left and the Belize dollar demand curve shift to the right. The Belize dollar supply curve and the Belize dollar demand curve will shift to the left.
- IN US$ PER US$ FRI THURS FRI THURS Americas Argentina 0.0172 0.0172 58.278 58.2427 peso Brazil real 0.2431 0.2401 4.1127 4.1655 Canada dollar 0.7619 0.7612 1.3126 1.3138 Chile peso 0.001407 0.001404 710.7 712 The above table shows U.S.-dollar foreign-exchange rates in New York trading (Oct. 19, 2019). Source: Wall Street Journal. Which currency depreciated from Thursday to Friday? Which currency appreciated?If $1CAD dollar is equivalent to 0.59372 British Pounds, how many CAD would it cost to purchase 603 British Pounds? Round answer to two decimal places. Your Answer:You learn that 1 year interest rates in Mexico are 10%, vs the US rates which are 2%. You have $1,000,000 and you want to earn the higher Mexican rates. You convert your US Dollars to Mexican Pesos at the spot rate of MXN20 / US Dollar. Answer the following questions:1- How many Mexican Pesos do you get to invest in Mexico? 2- How many Mexican Pesos will you have in one year? 3- If the exchange rate in 1 year is MXN 16/USD how many dollars will you get back? 4- What is your NET return in percent or dollars? (remember you will need to account for the 2% it cost you to borrow the dollars)